Company News
EU rejects claims Pirelli isn’t related to CNRC and Aeolus
Having published its definitive decision on Chinese-produced truck tyre dumping, the European Union has also rejected claims that Pirelli is not related to either China National Tire & Rubber Co., Ltd (CNRC, which is owned by ChemChina) or Aeolus. Therefore, any tyres made by any of the related companies in China have to be subject to comparable import tariffs.
EC: “Important number of subsidies” uncovered by anti-subsidy investigation
In addition to announcing its final decision on measures related to Case AD640, its anti-dumping proceeding on new and retreaded truck and bus tyres manufactured in China, the European Commission has commented briefly on Case AS641, the anti-subsidy investigation focusing on these products.
Nexen and Grupo Soledad
Nexen Tire Europe has celebrated its 25-year business relationship with Grupo Soledad together with 100 guests in Madrid. Guests included replacement customers, car dealers as well as Rental and Leasing companies.
EU makes final truck tyre anti-dumping duties decision, retains fixed rates for manufacturers
The European Union has made its conclusive statement on the introduction of anti-dumping tariffs on truck and bus tyres and retreads manufactured in China. As previously announced, the EU will impose fixed rate anti-dumping duties on the products, with the final regulation 2018/1579 implemented from 23 October. This ends speculation that percentage rates could be applied. In fact, the EU has revised tariff levels up, almost across the board.
Tyre manufacturer share prices fall as demand loses pressure
Shares in tyre manufacturers dropped by as much as 9 per cent on Friday 19th October 2018, following Michelin reports that third quarter demand was down and that it was not expected to improve in the fourth quarter. Shares fell 6 per cent in early Paris trading to a seven-year low, but continued downwards and were down more than 9 per cent by mid-afternoon to 89.54 euros.
Michelin predicts significant slowdown in car and truck tyre demand
While presenting its nine-month 2018 results, Michelin has predicted a significant slowdown in passenger and truck tyre market conditions in the second half of the year. However, the well-known tyre manufacturer also predicted “sustained growth” in the speciality sector, which consists of OTR, two-wheel, aircraft and agricultural tyres.
Bridgestone now a Worldwide Paralympic Partner
A new agreement has expanded Bridgestone Corporation’s involvement in international sport. The tyre maker and rubber manufacturer has become a Worldwide Paralympic Partner; it is the seventh entity to associate itself with the International Paralympic Committee (IPC) in this capacity.
Falken Tyre Europe joins ETRMA
At the Board of Directors meeting held at its headquarters in Brussels yesterday, the European Tyre and Rubber Manufacturers’ Association welcomed Sumitomo Rubber Industries (SRI) as its newest member. SRI, whose affiliate subsidiary Falken Tyre Europe will be the association’s direct point of contact, will be counted as a member as of January 2019.
Will Amazon buy ATD?
October has been a tumultuous month for US tyre distribution. First ATD filed for Chapter 11 during the first week of the month. Then, less than two week’s later Sears, which includes Sears Autocentres (itself one just two major tyre installation partners for Amazon), also applied for bankruptcy protection. Now market analysts are asking if Amazon is planning to buy ATD.
Sears enters Chapter 11
On Monday 15 October 2018 Sears Holdings Corporation, the 132-year-old US retailer known for selling everything to everyone, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Southern District of New York.
ATD enter bankruptcy proceedings
A month after its credit rating was downgraded, American Tire Distributors, Inc. (ATD), the largest tyre wholesaler not only in the USA, but in the entire NAFTA region, filed for Chapter 11 bankruptcy protection in the District of Delaware on 4 October. At the time, the company announced that it had entered into a definitive agreement with approximately 75 per cent of its bondholders on the terms of a recapitalization that would reduce the company's debt by approximately $1.1 billion and increase its financial flexibility as it continues its ongoing transformation
Precipitated silica production starts at Evonik’s new US plant
Production of precipitated silica has commenced at the Evonik Industries plant in South Carolina, USA. The facility, set up with an investment of around US$120 million, will primarily meet demand from tyre manufacturers in North America for Evonik’s Ultrasil products. More than 40 new jobs have been created by the project.
Shareholder approval for Sailun Jinyu name change
The vast majority of Sailun Jinyu Group shareholders have approved the adoption of a new company name and changes to the company’s articles of association. Votes held during an extraordinary meeting of shareholders on 12 October resulted in a 99.1 per cent turnout in favour of both measures. The tyre maker will thus adopt the name Sailun Group Co., Ltd.
Pirelli to use ‘Patent Box’ tax breaks to further shift high value/standard balance
Pirelli is looking forward to tax concessions worth millions through its participation in the ‘Patent Box’ tax regime. Yesterday the tyre maker signed an agreement with the Italian tax office covering the 2015 to 2019 fiscal years; it estimates that the tax benefit for the three fiscal years to 2017 alone will amount to approximately 54 million euros.
Mobox: Flat rate tyre subscriptions a la Bridgestone
Bridgestone has introduced an all-inclusive monthly subscription service for tyres called Mobox. According to the company, Mobox subscription offers “new tyres, full warranty and other premium vehicle-related services, and all at an affordable price per month”.